H & M: FV increased to SEK230 but Sell maintained
SELL, Fair Value SEK 230 vs. SEK 225 (-3%)
Following the publication of Q4 12 results yesterday, we maintain our EBIT estimates unchanged but increase our 2013-15e EPS estimates by 2% as a result of a lower tax rate. As a result, our Fair Value is increased to SEK230 vs. SEK225. We do not change our Sell rating as: 1). Profitability in 2013 should continue to be impacted by long-term investments; and 2). The valuation is not compelling at 21.3x PE13e and 18.8x PE14e.
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